Ireland to seek cut in EU tax on imported US aviation fuel to ease airline cost crisis

In a significant move to address the escalating cost crisis facing our airlines, Ireland is preparing to petition the European Commission for an exceptional reduction in tariffs on aviation fuel imported from the United States. This proactive step is being taken amid growing anxieties about potential flight cancellations this summer, a concern already leading carriers like Aer Lingus to adjust their schedules.

“

We’re seeing increases in the price of jet fuel. So there are cost pressures there for airlines, and airlines will make commercial decisions, separate to Government ... But what I’m saying to people is our supplies and our reserves [of aviation fuel] in Ireland are very robust, with a 70-day reserve.

Minister for Energy Darragh O’Brien confirmed he will formally request the removal of duties on sustainable aviation fuel (SAF) from the US, citing the ongoing conflict in the Middle East as the catalyst for Ireland's complete reliance on US-sourced aviation fuel. While the supply itself remains robust, with substantial reserves in place, the primary challenge now lies in the soaring prices of jet fuel, which are placing considerable strain on airline operations.

“

Ireland is set to ask the European Commission to take the unusual step of dropping a tariff on aviation fuel to lower fuel costs for airlines.

This request highlights the delicate balancing act Ireland must perform, navigating global energy market volatility while safeguarding its vital air transport sector. The proposed tariff reduction, though temporary, underscores the urgency of the situation and Ireland's commitment to finding pragmatic solutions to support its airlines and, by extension, the thousands of passengers who depend on them.

“

100 per cent of Ireland’s supply of aviation fuel is now sourced in the US.